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Proposal to improve production process at Fujian Huisman Steel Manufacturing-Voorstel voor verbeterd productie proces bij Fujian Huisman Steel Manufacturing

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Delft University of Technology Department Marine and Transport Technology Mekelweg 2 2628 CD Delft the Netherlands Phone +31 (0)15-2782889 Fax +31 (0)15-2781397 www.mtt.tudelft.nl

This report consists of 34 pages and 5 appendices. It may only be reproduced literally and as a whole. For Specialization: Transport Engineering and Logistics

Report number: 2014.TEL.7823

Title: Proposal to improve production process at Fujian Huisman Steel Manufacturing.

Author: A.N.M. van der Bijl

Title (in Dutch) Voorstel voor verbeterd productie proces bij Fujian Huisman Steel Manufacturing

Assignment: Research Assignment Confidential: yes

Initiator (university): dr.ir. Y. Pang

Initiator (company): P. Overes (Huisman, Zhangzhuo (People’s republic of China)) Supervisor: P. Overes

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Delft University of Technology Department of Marine and Transport Technology Mekelweg 2 2628 CD Delft the Netherlands Phone +31 (0)15-2782889 Fax +31 (0)15-2781397 www.mtt.tudelft.nl

Student: A.N.M. van der Bijl Assignment type: Research Supervisor (TUD): Y. Pang Creditpoints (EC): 15 Supervisor (Company): P. Overes Specialization: TEL

Report number: 2014.TEL.7823 Confidential: Yes

Subject: Proposal to improve Production Process at Fujian Huisman Steel Manufacturing The assignment will take place at the production facility of Huisman in Zhanghzhuo, People’s Republic of China. During a period of 5 months the assignment should be executed on location, starting on the 17th of June and finishing on 22nd of November 2013.

Previous projects indicated a number of Semi-Finished Products (SFP) that are disturbing the normal (coordinated) flow of fabrication. Basically SFP’s could be the little attachments to main steel

constructions that need to be mounted on, or trial fitted, before successive activities can take place. Typically people don’t focus on them, as these components require a number of process steps, different from the main fabrication process/line. Nevertheless these items could become real showstoppers for large construction projects.

The idea is to identify these SFP’s at an early stage and manage them by Supply Chain Management (SCM) rather than Fabrication. The products can then be outsourced, or and this is the interesting bit, be produced internally by a separate line of communication and control. This separate line of

communication and control, means that once SFP are selected, they will receive a routing through the various workstations and workshops. The project master schedule (controlled by Fabrication) will indicate when these SFP’s are required and this is basically providing an end date for SCM. This sounds like a relatively straight forward system, but is a great challenge due to the fact that every product made is a one-off. A similar system is in place for individual parts (more than 1

individual part can make an SFP, e.g. by welding or assembling). Your assignment is to come up with the conceptual design. Once the design of the system is finished, an implementation plan can be made and will start with support of our in house programming department.

The assignment will require:

- Insight in the various fabrication processes - Understanding of Engineering

- Understanding of production process and material flow through the company - Project management skill

- Reporting skill (various presentations and reports)

The report should comply with the guidelines of the section. Details can be found on the website. The professor,

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Terminology & abbreviations

Term Explanation

HCN Huisman China

HNL Huisman Netherlands

FHSM Fujian Huisman Steel Manufacturing a.k.a. Huisman China

FAW Fitting and Welding

MS Main Structure

MEC Mechanical Assembly

ASS Assembly

WM Weldment

SP Single Part

SCM Supply Chain Management

SPP Single Part Production

WBS Work Breakdown Structure

PBS Product Breakdown Structure

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Contents

1 Introduction ... 4

2 Current situation and problem definition ... 6

2.1 Departments ... 6 2.2 Problem definition ... 8 3 Improvement proposal ... 9 3.1 Splitting Production ... 9 3.2 Coordination of production ... 10 3.3 Concluding proposal ... 11

4 Demarcation Main Structure vs. added material ... 12

4.1 Weight, workload and throughput time ... 12

4.2 Concluding ... 13

5 Coordination of production: Breakdown Structures ... 14

5.1 Breakdown Structure ... 14

5.2 Early stage Main Structure breakdown ... 15

6 Product Breakdown Structure ... 16

6.1 The PBS set up, the hierarchy ... 16

6.2 Use of the PBS ... 19

6.3 PBS creation ... 19

7 Work Breakdown Structure... 21

8 Material Preparation ... 24

8.1 Current Preparation Function ... 24

8.2 Required additional activities ... 24

8.3 Hierarchy and demand times... 24

8.4 Multiple similar products ... 25

9 Production ... 26

10 Programming: Built or Buy? ... 27

10.1 Product Breakdown Structure... 27

10.2 Work Breakdown Structure ... 27

10.3 Material Preparation Module ... 28

10.4 SPP modules ... 28

11 Huisman Global vision ... 29

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11.2 Differences with proposal HNL ... 29

12 Recommendations for further investigation ... 31

12.1 Main Structure breakdown + demarcation ... 31

12.2 Collect throughput data ... 31

12.3 PBS creation ... 31

12.4 Engineering updates ... 31

12.5 Trial fit and Foundations ... 32

12.6 Material Preparation ... 32

12.7 Conventions, standards and rules ... 32

12.8 Production ... 32

13 Concluding summary ... 33

Appendix 1. Breakdown Structure example ... 35

Appendix 2. Template Main Structure Breakdown ... 36

Appendix 3. PBS walkthrough poster ... 37

Appendix 4. Part of PBS A12-55000 Mast Head ... 38

Appendix 5. Part of WBS A12-55000 Mast ... 39

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1

Introduction

Huisman is a globally operating company with extensive experience in the design and manufacturing of heavy construction equipment, mainly for the offshore sector. Huisman is a producer of innovative products, mainly one offs: nothing is the same or

standardized. The range of products goes from small 30 tons Pedestal Mounted Offshore Cranes up to 5,000 tons Offshore Mast Cranes and in the future maybe even up to 10,000 tons Tub Cranes. Besides cranes, also pipe-lay equipment, drilling towers, reels and heave compensators are designed and produced.

The headquarters of Huisman is located in Schiedam in the Netherlands, around the world Huisman has several facilities. One of the production facilities is located in Zhangzhuo in the People’s Republic of China. This facility is officially called Fujian Huisman Steel Manufacturing (FHSM) but is within Huisman also known as Huisman China (HCN).

The current production process at Huisman China can be simply divided into two parts: single part fabrication versus main production. Single parts are besides purchased parts, the parts that are cut, bend, machined and/or painted in house without welding or

assembling activities. The main production uses the single parts and purchased parts to create the end-products for the customer through mainly welding and assembling. The function of planning in a production facility is to assign resources to projects and make sure everything will be done according to deadlines. Currently there is one

planning at Huisman China, this planning list all activities related to the fabrication of the end-product including the material required for the tasks. The activities are based on the drawings and partslists generated by engineering. The drawings are not per individual weldments or assemblies nor single parts, therefore also the activities in the planning are also not per individual weldment or assembly.

The facility in China is operative since 2007 and has grown rapidly from less than 5 simultaneous running projects in 2007 up to at least 25 in 2013; which is a really impressive growth! This growth however has consequences for the way of fabrication and causes problems for planning and coordination.

To make it even more difficult, the diversity of products and the huge capacity range makes it currently almost impossible to keep track of all the material that belongs to each individual end-product, all built simultaneously with other projects.

In the past there was a clear overview of the production facility because only a few projects were executed at the same time, it was easy to see which parts belonged to which project. Now the output has grown incredibly, it is not so easy to overlook the site, especially not to see what material belongs to which project. Since the activities in the planning for all weldments and assemblies are not individually indicated in the planning, this does not help to keep track of everything. “We got lost in a lot of work and now

material gets lost.” This problem keeps increasing since production keeps on growing.

The overview is lost, not all assemblies, weldments are individually listed in a planning and the current state and location of material is therefore often not known. The material delivery to projects is currently in large quantities of single parts instead of specific for appropriate sized workorders.

Currently the production on Huisman is system wise almost like a black box, input is single parts and output is the order, the end-product. What happens in between is in rough outlines coordinated and planned but not specific. There are several reasons for

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this; it will be further explained in chapter 2 problem definition. The consequence of this lack of coordination and planning is that there is a lot of room for improvement: the production process can be better monitored and become transparent; by good planning the throughput times in big workshops can be reduced i.e. the production can be a lot smoother with better use of the same resources. How this can be achieved is the topic of this assignment.

To restore the overview a new approach of coordination is required. The focus in the big workshops has to be on the structure that requires a lot of the resources and not

everything in general. The parts that are not easy to reschedule or subcontract require most of our attention; we call this the Main Structure. Everything added to this Main Structure is considered to be added material.

Obviously also the added material needs to be planned and has to be produced on time, however this requires less of our resources and are therefore often easier to reschedule or subcontract if necessary. This material is a lot more flexible during fabrication

compared to the Main Structure; therefore our focus for the facility/production planning should be on the Main Structure, the added material coordination can be done on the background.

The final purpose of this assignment is to solve this described problem by restructuring engineering to production at Huisman China. Improved planning, better material delivery, specialized production and ensuring potential to grow with better use of current

resources and reducing throughput time.

In cooperation with Huisman China I came up with a proposal to improve the production process at Huisman China. The backbone of the proposal is the use of a Product Breakdown Structure (PBS) in combination with a Work Breakdown Structure (WBS) to coordinate the production. In the coordination a demarcation is made between the Main Structure versus the added material. The PBS is completely new for Huisman China, a WBS is already being used, but currently list all activities and material, this has to change to only list the Main Structure activities linked to the material in the PBS. The coordination of the fabrication of the added material is done on the background and not part of the WBS.

This is my proposal for an improvement at Huisman China set up with the help of a lot of people at Huisman. This proposal creates a basis for ongoing projects.

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2

Current situation and problem definition

The final purpose of this assignment is to come up with a proposal to restructure engineering to production at Huisman China with as goal to improve the production process. To realize that, awareness of the current situation and shortcomings is needed, this is described in this chapter.

2.1

Departments

In the current way of fabrication a lot of departments are involved. Engineering is obviously the basis for everything; the Planning is the setup for Work Preparation and Production. The Single Parts are produced via a separate trajectory, coordinated by the Work Preparation department. All other fabrication is coordinated in the Work

Breakdown Structure by Planning. Work Preparation is the supplier of production, and Production is of course the final step in the fabrication process. All departments will be discussed here, their current way or working, drawbacks and problems.

2.1.1 Engineering

Engineering is the basis of every project, each end-product is worked out in detail and the output is the entire drawing set and partslists. The partslist lists only single parts, fabricated in house and purchased parts. The drawings describe everything in detail, the weldments, assemblies and single parts; all with their fabrication and machining

requirements.

The current structure of drawings holds multiple weldments per drawing set. Each drawing set has its own partslist. The structure of the output is flat, there is no hierarchy in the drawings or partslists, all single parts used to construct the weldments and assemblies on one set are put in one simple list not linked to a single weldment or assembly. This flat engineering structure makes it difficult to indicate relations between materials.

2.1.2 Planning Department

The output of Engineering is used by planning to create a Work Breakdown Structure (WBS) for each order. The WBS is a planning indicating all activities for production with all the work orders including the allocation of material (single parts). Planning

department gives the deadlines for Single Part Production coordinated by Work Preparation department.

The work orders issued by Planning are based on drawings and partslists. The drawings and partslists hardly get split up in multiple fit and welding (FAW) work orders. If a drawing describes multiple weldments, the FAW work order is mostly also for all weldments at once and all single parts on that drawings are allocated and delivered at once, not per individual weldments. Weldments with different actual demand times and/or routing are combined in one drawing/work order, this makes it very difficult to keep track of the material and it is therefore no surprise material gets lost.

Material delivery of single parts is not specific; a lot of material is already delivered because one workorder request this. However not all material is needed yet, resulting in much material laying in the workshops, causing bad overview and increased risk of getting lost.

The fact that there is only one WBS/planning responsible for all production (except single parts fabrication) results in two options: 1, a not detailed planning, resulting in extensive work orders, with large and nonspecific material delivery and single part demand. Or option 2, a very extensive and detailed WBS which contains all work orders

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per individual weldment. Option 1 is the status quo; option 2 is currently too much work to realize and would lack good overview.

2.1.3 Work Preparation

Work Preparation currently coordinates the production of all single parts and the subcontracting, the focus in this document is solely on Single Part coordination. The Single Part production is based on the partslist from Engineering combined with the demand time from the WBS/Planning.

The demand of single parts is not efficient, a lot of single parts are now requested due to the large work orders but are not needed yet. They however do need to be produced according to the system and thereby unnecessarily demand resources and thereby decrease efficiency.

2.1.4 Production

Production is responsible for the fabrication of the order, coordinated by the Work Orders from Planning and fed by a material delivery of single parts and subcontracted material. The Production is almost comparable with a black box: single parts go in and the order comes out, see Figure 1: Current production process.

“Black box”

Production

Single

Parts

Order

Figure 1: Current production process

In practice during fabrication the single parts are often first constructed into weldments and assemblies and then further used to construct the end product. This is currently not really split in production, all happens inside the black box of production, and in practice therefore side by side in the workshops. All welding and assembling is done by

production and coordinated by planning. That means complex structures, considered to be the Main Structures, are created next to very simple weldments with low workload, making it difficult to focus on critical parts.

The production department is overloaded with single parts; they might receive small parts for a small simple attachment at the same time as entire section walls. This obviously means bad overview and difficulty to focus. Due to the combined work orders for multiple weldments with different routes and demand times the material delivery is far from efficient.

In practice the main reasons for delay in production are:

 Missing some material

 No material at all

 Incorrect work order

Most of this is a consequence of the non-individual work orders and partslists causing low traceability of material in the shops and yard.

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2.2

Problem definition

Most problem are visible in the production stage however the problem itself come from the coordination of production, resulting in non-specific work orders/planning, moderate overview, poor traceability of material and difficulty to focus with as consequences room for improvement in efficiency of use of resources.

It is not a single problem that causes these problems at Huisman China but a combination of factors, starting with the output of engineering up to the way of

coordinating production. The question is how this can be improved, chapter 3 described my proposal to improve the production process, what measures are necessary from engineering up to production to improve the entire production process at Huisman China.

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3

Improvement proposal

This chapter describes my proposal to overcome the problem described in chapter 2 Current situation and problem definition. This is my proposal for Huisman China, put together with the help and cooperation of many people from Huisman.

The proposal consists of two parts both to realize better coordination of production: first part concerns with how to split production in two parts Main Structure versus added material; second part is about how the coordination and planning should be realized.

3.1

Splitting Production

The main idea behind the entire proposal is to split coordination of production in two parts: Main Structure and added material. There are basically two main steps in the fabrication of an end-product; both are currently in the WBS. First step is to construct the Main Structure, this is the basis of the order, the large resource demanding parts.

Second step is expanding of the Main Structure through the addition of material.

3.1.1 Production process

The Main Structure goes through the production facility and acts like the backbone of the end-product. Proposal is to only list in the WBS all activities for the Main Structure fabrication and indicated the activities for the addition of material, the fabrication of this added material is however not part of the WBS. This added material can be single parts, weldments and/or assemblies, in short referred to as products. The Main Structure itself is also constructed out several products.

Single parts are purchased parts and in house cut, bent, machined and/or painted parts that do not require welding or assembly steps. Weldments are welded combinations of multiple single parts and/or other weldments. Assemblies are mechanically assembled combinations of single parts, weldments and/or other assemblies.

At the moment only single parts are delivered to production, the added material is now therefore only single parts. Instead of only single parts in the future also weldments and assemblies will be prefabricated and are delivered to the Main Structure fabrication. In other words: the material delivery to a project changes from solely single parts to Assemblies, Weldments and Single Parts. This is illustrated in Figure 2: Proposed production process, compare this illustration with Figure 1 describing the current situation. The material delivery to production changed to include weldments and assemblies, reducing the amount of work in the black box of production.

“Black box”

Production

SPs

WMs

ASSs

Order

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3.1.2 Resource planning

The reason to make a Work Breakdown Structure and planning is to assign resources and to fabricate orders in an optimal and efficient way. The Main Structure consists of the “big” and complex parts of the project, the parts that take up the most resources: space, machines and/or people, these parts are most difficult to reassign and often not easy to subcontract. Therefore these are the most important to keep track of and plan, these parts have to be in the Work Breakdown Structure.

This means that equipment or parts of a project may be regarded as essential and big on project scale, but are almost insignificant and really small compared to other ongoing projects within the facility. And therefore are not important enough to put in the WBS. The non-Main Structure, being the added material, require less resources and are therefore easier to plan, reschedule or even subcontract. The challenge is to set a suitable demarcation. The Work Breakdown Structure (main Planning) should consist of the complex and demanding parts; all other material will be coordinated on the

background.

Currently the fabrication of weldments and assemblies in in the same WBS as the fabrication and expansion of the Main Structure. Single part production is not part of this WBS and happens on the background. The proposal is to separate the production of all added material from the Main Structure: to prefabricate all single parts and the

weldments and assemblies that are considered as added material and leave this out of the WBS. Chapter 4 describes how the demarcation between Main Structure and added material should be made. For a company that only builds one-offs in a huge capacity range the deviation is more difficult to define than one would expect.

3.1.3 Advantages

Splitting the Main Structure production from the added material fabrication has some major advantages: Focusing on the Main Structure and progress, gives a better insight in the production capacity in the (larger) production halls. The fabrication of the added material will get more transparent and the traceability increases because all single parts, weldments and assemblies are now separately defined. The production process and progress will be better visible due to a more detailed planning. It is known how the order goes through the workshops, instead of a black box with as input single parts and as output an end product.

The split of production also allows to focus on Main Structure, the workshops are now not flooded with single parts which need to be made into assemblies and weldment. These can be made elsewhere and are delivered to the Main Structure.

3.2

Coordination of production

To be able to implement this separation of production a way to coordinate production is necessary; this is the second part of the proposal. Currently Huisman China works with one WBS which includes the planning of activities and lists material. As stated in chapter 2 about the current situation this way of planning results in a non-detailed or very

extensive planning and both are not preferable. An alternative is to split the material from the activities planning with the use of a separate Product Breakdown Structure and Work Breakdown Structure. The PBS will list all material, from end product up to single parts in the correct hierarchy; the WBS will list only the activities for the fabrication of Main Structure and expansion of it with the addition of material. As stated Huisman currently has some kind of WBS, a PBS however is not used yet.

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The splitting of Main Structure versus added material results in fewer activities in the WBS, the PBS will describe the physical link between Main Structure versus added material. Working with a PBS and WBS will result in clear insight in the production of all material, everything is listed individual making production more transparent and

increasing traceability of individual products.

Chapters 5-7 describe both breakdown structures in detail, also how the PBS and WBS should be constructed and what the link between the two is.

3.3

Concluding proposal

The proposal to improve the production process at Huisman China consists of two parts: 1, to split the production of Main Structure from added material fabrication. Part 2, coordinate production by means of a PBW and WBS combination. This will create better traceability of material, give more insight in production steps and improve overview in workshops and yard.

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4

Demarcation Main Structure vs. added material

To be able to implement the proposal a suitable demarcation has to be set that splits the Main Structure from the added material. The main question is where should we put the demarcation, what defines Main Structure? Or what defines added material? Is it possible to define a general rule for added material?

The current deviation of Main Structure vs. added material for Huisman China is at the level of Single Parts, since only Single Parts are being prefabricated separately. The proposal is to shift that prefabrication line to also include assemblies and weldments. The demarcation between Main Structure and added material should be clear, functional and strict. The demarcation has to be based on the resources and is therefore not per definition suitable for all Huisman facilities, this proposal is written especially for Fujian Huisman Steel Manufacturing. The basic idea of the proposal is however suitable for every location and with some adjustments in the requirements it might be possible to set a global definition; this is not in the scope of this report.

As already introduced in chapter 3 Improvement proposal, the demarcation of Main Structure versus added material is determined by the demand of resources. Main Structure demands a lot of resources, added material less. So there must be a limit between the two, the lower limit of Main Structure is equal to the upper limit of added material. The splitting of the Main Structure itself in appropriate fabrication proportions will be covered in chapter 5 Breakdown Structures. Here only the demarcation Main Structure vs. added material is described.

Multiple factors are important for the demarcation, as said before the requiring of

resources is the most important aspect, what indicators express this and how can this be estimated in early stage? The main limitations within Huisman are currently space and machines, the throughput time in big workshops and time on machines is therefore critical for the total production capacity.

4.1

Weight, workload and throughput time

In the first place weight is an important indicator, this is a variable that is known early and gives a good indication of the amount of work. Hours are always calculated on the basis of weight and type of product (single part, weldment or assembly).

However the amount of hours does not say everything, the throughput time is more important. How long does a part require space or a machine? As illustration: 400 hours FAW can be done in 2.5 days if 10 people can work on it simultaneously, but 400 hours machining requires a machine 5 weeks (both based on 2 shifts of each 40 hours per week). There is currently, unfortunately, not a clear standard, guideline or easy way to define throughput time based on weight or workload. It is also not favorable to base the demarcation on what material requires machining on certain big machines, because then it will then never be valid for Huisman Global.

Setting a weight limit for the demarcation would be too general. In practice some light material requires a lot more machining, work or space then simple heavy structures. Certain product categories are likely to require more work per ton then others. Therefore incorporating product categories in the demarcation helps us set a better demarcation, e.g. winches always require machining, a lot of work per ton, while a boom mostly requires welding, a shorter throughput time per ton. Therefore we indicate per product category what weight is considered Main Structure or added material. See Table 1, assemblies and weldments that fall in the blue blocks are considered to be Main Structure; the grey blocks are added material.

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Table 1: Draft set-up Main Structure vs. added material Mass vs. group Win ch Fram e Win ch Dru m S he ave bo x S tr uc tural S tee l C ustom S up po rt Lo w er B lock Access E& H r ou ti ng S he ave s O the rs 0-1000 1000-1500 1500-2000 2000-2500 2500-3000 3000-3500 3500-4000 >4000

Every single product has to be planned and coordinated; every product from the drawing will be assessed according to this table. If the product falls in one of the blue boxes it will be considered to be Main Structure and the fabrication is in the scope of the WBS. If a product however falls in one of the grey boxes it is regarded as added material, and only the adding to the Main Structure activity will be in the WBS, the fabrication is of the product is on the background. A Main Structure product can be made out of several added material products.

Some types of products are not preferred as Main Structure for example because they are supportive products or simple products that are too expensive to produce in house. Access, E&H routing and sheaves are examples of products that are expelled from being Main Structure. Single parts are also excluded from being Main Structure; single parts are always added material.

The values used in this table are not fixed, this a first proposal, practicing with real breakdowns of projects and use of common sense in a project team should result in a better table. The values can and should be adjusted and columns can be added or removed, to indicate this there two columns left empty in the table. The improvement of the table is one of the recommendations at the end of this report, see chapter 12.

4.2

Concluding

The demarcation of Main Structure versus added material should be based on

throughput time but with the current data collection that is not possible yet. For now the demarcation is based on weight in combination with product category see Table 1. Every weldment or assembly in one of the blue boxes is considered to be Main Structure and therefore part of the WBS; everything in grey is added material and will be prefabricated. The demarcation given here should be improved and tested in a project team. As soon as the entire proposal is implemented, data collection can be a lot better and in the future throughput time might be a better demarcation, then the switch should be made to throughput time instead of weight!

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5

Coordination of production: Breakdown Structures

If Huisman decides to split the production, then of course there must also be a way to control and coordinate this. The proposal is to introduce and use a Product Breakdown Structure (PBS) and Work Breakdown Structure (WBS) for this. Together the PBS and WBS define how the product is built up (material wise) and how the product is in fact fabricated (work).

The Product Breakdown Structure concerns only with the products, the material from which the order is fabricated, step by step broken down from entire project up to Single Parts. The Product Breakdown Structure does not contain any activities at all. Currently Huisman does not use a Product Breakdown Structure.

The Work Breakdown Structure on the other hand only list activities, all work involved in fabricating the Main Structure and all activities related to expanding the Main Structure by adding material. The activities are of course related to the material in the PBS. Therefore the PBS is completed first before the entire WBS can be made.

The WBS and PBS both use the same standard breakdown structure as base; this breakdown structure introduces certain levels to split the Main Structure in appropriate sized parts resulting in an easier and better coordination of fabrication. The standardized breakdown structure is explained in this chapter, the PBS and WBS will be further explained in the next two chapters.

5.1

Breakdown Structure

At Huisman there is a standard breakdown structure proposed by Folkert Kool a previous intern. This set up is revised and improved during this project. In this chapter everything about the breakdown will be shortly explained. For background is referred to: “Guide WBS and SFP” by Folkert Kool.

The breakdown structure is based on levels, similar to a tree. For every Order Deliverables, Blocks and Sections are defined. That gives four levels in total:

Level 1: Order

Level 2: Deliverables Level 3: Blocks

Level 4: Sections

These levels are used only for the Main Structure split up. At all levels material can be delivered: assemblies, weldments and/or single parts. All levels of the breakdown are explained below and the rules are given on how to determine them.

The Deliverables, Blocks and Sections describe the Main Structure and should therefore all be Main Structure according to the rules for Main Structure given in chapter 4.1.

5.1.1 Order

The order is the end-product that will be delivered to a customer. For example a crane, traction winch, Vertical Lay System or Heave Compensator. It is possible that one customer has multiple orders at the same time for one project. The order is always defined by the customer and sales department. An order is a given fact and cannot be changed in the breakdown structure.

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5.1.2 Deliverables

The Deliverables are defined by what must be delivered to the quayside for

transportation or installation at the quayside. The Deliverables are part of the order, the order is the complete end-product; the Deliverables are the parts in which an order is delivered by Huisman China .

5.1.3 Blocks

Blocks divide the Deliverables in necessary partitions for fabrication. Defining Blocks:

1. If two parts close a Deliverable, which houses an assembled construction, by welding. The assembled construction and the two parts are all three considered to be Blocks.

2. A load carrying assembled connection divides the Deliverable into two Blocks. 3. If it is more practical for the sake of outfitting or painting a Block demarcation can

be moved, added or removed.

5.1.4 Sections

If a certain part of a Block needs individual machining, painting or outfitting that part is considered to be a Section.

5.1.5 Additional rules and remarks

A higher level cannot have the same name as a lower level; it is not allowed to have redundant levels: one cannot do the same work twice or at two levels.

An important note is that the standard breakdown in Deliverables, Blocks and Sections depends on the production facility. The resources and limitations are different for every Huisman site and therefore the breakdown of the Main Structure does not need to be the same for every location.

An example of a worked out breakdown structure of an Offshore Mast Crane is given in Appendix 1. It shows how in practice an order is split up in deliverables, blocks and sections according to the rules. The breakdown can be different for every order; this example is therefore not bounding for all Offshore Mast cranes just one example for one order.

The breakdown levels are used for the WBS and PBS, but material on a Section level in the PBS does not need to be used in the WBS at the same Section level. If it is more convenient, the material might be used at a higher level (Block or even Deliverable level). The WBS is not part of the PBS! This will be further explained in the chapter concerning the Work Breakdown Structure.

5.2

Early stage Main Structure breakdown

The standard breakdown of the Main Structure can be made at very early stage, once the order in confirmed. The breakdown into Deliverables, Blocks and Sections is the responsibility of Project Management. It should however be defined by a multidisciplinary team of Project Management, Planning, Production and Engineering. All these

departments should approve the proposed template and stick to it for engineering and planning.

During this assignment a template is made for this, added as Appendix 2 to this document. Appendix 2 shows a completed template according to the breakdown structure presented in Appendix 1. The empty template is available within Huisman

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6

Product Breakdown Structure

A Product Breakdown Structure is currently not used within Huisman. Although if Huisman wants to achieve a splitting of production then the PBS is required. This chapter introduces and explains what the Product Breakdown structure, proposed to be used by Huisman.

The PBS uses a “Top-Down approach”, the breakdown is based on the physical position of the products/parts; the hierarchy therefore corresponds to the delivered product. The Product Breakdown only consists of material and no activities. Also for the PBS the Main Structure is leading, the levels as introduced in chapter 5.1 give the basis for the PBS. These are already known before the PBS is made. A part of an example PBS is given in Figure 5 at the end of this chapter. During explanation in this chapter will be referred to this example.

The PBS starts at the highest level, the entire order and breaks the end-product up in levels and products until the lowest level: Single Parts. Currently the flat engineering structure at Huisman is not suitable to automatically produce a PBS; this is therefore currently a very labor-intensive task.

The Main Structure is the backbone expressed in Deliverables, Block and Sections and there are products added to this Main Structure. The structure of the PBS should make it clear and easier to indicate tasks in the WBS and should improve the material delivery.

6.1

The PBS set up, the hierarchy

PBS Built-Up Step 1: Order Level Step 2: Deliverable Level Step 3: Block Level Step 4: Section Level Step 5 Step x Indicate at Order:  All Deliverables  Assemblies  Weldments  Single Parts At this level only

Indicate at Deliverables:  Blocks  Assemblies  Weldments  Single Parts Expand:

Assemblies and Weldments Form previous Step

Deliverables

Blocks

Sections

Assemblies

Single Parts

Weldments Single Parts

Weldments Single Parts

Assemblies Single Parts Assemblies

Single Parts

Weldments Single Parts

Weldments Single Parts

Assemblies Single Parts Assemblies

Single Parts

Weldments Single Parts

Weldments Single Parts

Assemblies Single Parts Assemblies

Single Parts

Weldments Single Parts

Weldments Single Parts

Assemblies Single Parts Indicate at Blocks  Sections  Assemblies  Weldments  Single Parts Expand:

Assemblies and Weldments Form previous Step

Indicate at Sections:

 Assemblies

 Weldments

 Single Parts

Expand:

Assemblies and Weldments Form previous Step

Expand:

Assemblies and Weldments Form previous Step

Expand:

Assemblies and Weldments Form previous Step

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6.1.1 Identifying material

For each level, Order, Deliverable, Block and Section, has to be identified what material is required. The material can be part of the Main Structure or added material that does not matter here, for each level has to be listed what is required at that level. The order level can consist of Deliverables, assemblies, weldments and single parts. Deliverables can consist of Blocks, assemblies weldments and single parts etc. etc. See Figure 3, this illustrates what material can be identified and how the PBS should be expanded. List for each assembly, weldment or single part: weldment or position number (column 3 in Figure 5), quantity (column 4) and related drawing (column 5).

For weldments and assemblies, the lower level material also has to be listed up to eventually single parts. This might require many levels since, weldments and assemblies can have multiple levels.

All material has to be added at the lowest level possible, for example a Sheavebox at the Boom Pivot Section should not be identified at the Boom Deliverable.

6.1.2 Indicate products

The material identified under 6.1.1 is now listed individually as assemblies, weldments and single parts. Often material however belongs together, for example a sheavebox weldment, a sheave assembly and some assembly single parts together form the product of a complete sheavebox. It is then much better to group this material in a product; the next step is therefore to rearrange the material into products, this often requires an additional level in the PBS, the example of the sheavebox is visible in Figure 5.

It is obviously also possible to identify the products first and later identifying the material required for the product. This would even be better but the engineering structure is currently not based on products but on assemblies, weldments and single parts,

therefore it is here given in this order, as a separate step. In the future this may change. When a product breakdown structure is made before all drawings are known one can already identify many products, because they are described in the order.

A product name may never be the same in the PBS; therefore if the type of product exists multiple times, the location should be included in the name to avoid confusion. Examples of products: sheavebox, shaft (incl. all sheaves etc.), winch, lower blocks…

6.1.3 Grouping of material

Similar weldments and/or assemblies at one location can be grouped. For example all E-Routing in one Section can all be grouped; this is also possible for access railings. This creates a better overview and also makes it easier to allocate activities in the WBS. Stairs and ladders may only be grouped if they are identical weldments, on the same level in the PBS and the weldments can be attached at the same time.

6.1.4 Assign WBS destination (column 6)

By identifying all products and material, the actual Product Breakdown Structure is finished. The next step is to add certain information to make the step to the WBS easier. The Main Structure fabrication is described in the WBS, the products are prefabricated as much as possible and are added to the Main Structure, the adding activities are indicated in the WBS. By indicating the related standard WBS task in the PBS, it becomes easier to construct the WBS.

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There are 5 standard WBS activities that can require material delivery:

 Main Structure

 FAW Attachments to Main Structure

 FAW Foundations to Main Structure

 FAW E&H Routing to Main Structure

 Outfitting

 Completion

The standard WBS activities will be further explained in Chapter 7 Work Breakdown Structure.

WBS Destination for material in PBS

Questions WBS Destination R e v 4 : A . v a n d e r B ijl 0 1 /0 8 /1 4

FAW E&H Routing to Main Structure Yes

Requires Trial Fit? with additional material? No FAW Foundations to Main Structure Yes No, FAW FAW Attachment to Main Structure No

List as Loose Item Yes No Main Structure E & H Routing? Mechanical Attached to Main Structure? Delivered to client separate from Main

Structure? Completion Required for Main Structure fabrication? Yes No Added Material/ products

Used only for completion?

Outfitting Yes

No Yes, MEC

Figure 4: WBS destination walkthrough

The flowchart in Figure 4 shows how to list the correct WBS destination, the questions should be asked for all material without a destination. The destination should be indicated for all added material; of course when a weldment or assembly received a

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WBS destination the lower level material does not need to get a WBS destination, that’s redundant. This is shown in Figure 5 as well, the plates used to create the sheavebox weldment, or the single parts used to create the sheave assembly do not receive their own WBS destination.

6.1.4.1 Loose Items

When material is not used to create or expand the Main Structure but is delivered separately to the quayside it is listed in the PBS as Loose Items.

6.1.4.2 Foundations

For foundations has to be indicated what additional material is required for the trial fit. The PBS module/program should ask for this when the WBS destination is selected. There is an extra demand time for that additional required material, equal to the foundation fitting time. This demand time can be an intermediate demand for the additional material, for example before painting is done.

6.1.5 Assign category to attachments and outfitting material (column 7)

To create an even better overview in the Work Breakdown Structure it is helpful to already identify what kind of product it is. There are 5 standard categories for attachment and outfitting material:

 Rope Leading & Rigging

 Sensors & Switches

 Electrics & Hydraulics

 Access

 Miscellaneous

For all products with an outfitting and/or FAW attachment to MS destination this category must be indicated.

6.1.6 Trial fitting for weldment fabrication (column 8)

Trial fitting for weldments fabrication itself can be necessary; therefore it has to be indicated in the PBS if a weldment requires this. If in the PBS program is indicated on what material the trial fit needs to be done, the trial fit is possible after that material is fitted. This should be used in the planning of the weldment fabrication.

6.2

Use of the PBS

The Product Breakdown Structure is used to create all tasks in the Work Breakdown Structure. The Main Structure fabrication and adding the products is in the scope of the WBS. The prefabrication of all added material will not be in the WBS but in a Material Preparation Module, obviously also fed by the PBS. The PBS decides what material is in the WBS or in the Preparation module. The work orders follow from the WBS, the

picklists for the work order follows from the PBS.

6.3

PBS creation

The process of creating the PBS is currently very labor intensive, all has to be inserted manually due to the flat engineering structure of the drawings and partslists. It would be very helpful if the engineering output would change, it is redundant work to allocate all single parts to all individual weldment again, since it was already know when the drawings were made. The partslist should therefore be related to the weldments and assemblies.

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To validate the proposed PBS it was necessary to create several PBS's, the walkthrough on how to create a PBS with the current engineering output is added as Appendix 3. This can be used if Huisman want to start using the PBS without changing the engineering structure yet.

Appendix 4 shows a partial PBS of the A12-55000 Masthead, this is added to this report to give an additional PBS example.

1 2 3 4 5 6 7 8

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7

Work Breakdown Structure

Currently Huisman makes use of a Work Breakdown Structure to create a planning, this WBS is however not similar to proposed here. The current WBS list activities and material and makes no difference in Main Structure and added material, as explained in chapter 2, this has drawbacks: a non-detailed or very extensive planning. The proposed WBS is described in this chapter.

The proposed Work Breakdown Structure lists only activities related to fabricating the order, no material. It is important that the WBS is complete, list all necessary information but should also be limited to keep it clear. That is why the WBS should be based on the Main Structure, this is leading. The entire fabrication of the Main Structure is part of the WBS and all activities related to the expanding of the Main Structure with products are also part of the WBS. The fabrication of added material is not part of the WBS.

There are 8 standard categories of work in the Work Breakdown Structure:

 Main Structure -requires material delivery

 Fit & Weld Attachments to MS -requires material delivery

 Fit & Weld Foundations to MS -requires material delivery

 Fit & Weld E&H Routing to MS -requires material delivery

o Machining -floating activity

o Painting -floating activity

 Outfitting -requires material delivery

 Completion -may require material

Main Structure consists of all fitting and welding and mechanical assembly tasks

related to the fabrication of the Main Structure

Foundation is material that is FAW to the Main Structure and temporary requires

additional material for trial fitting.

E&H Routing contains all material for electricity and hydraulics routing that is FAW to

the Main structure.

Attachments are all material that is FAW to the MS, does not require trial fitting with

additional material and is not Main Structure or E&H routing.

Outfitting is all mechanical assembly work except Main Structure assembly, electrical

and hydraulic work and mechanical completion.

Completion consists of the activities related with quality control, commissioning and

testing. Material may be required.

Painting & Machining are floating steps and can occur at every stage of production.

Behind all steps is listed whether or not material can be required to complete the step, this therefore means that only these steps are linked to the Product Breakdown

Structure, since the PBS holds all material. Obviously the PBS therefore also indicates the corresponding WBS category.

This design/proposal only focusses on fabrication that requires material delivery; all other steps are not worked out here. Figure 6 at the end of this chapter shows the WBS for activities related to the PBS of the Boom Pivot Section discussed in previous chapter.

7.1

Creating a WBS

In the Work Breakdown Structure, the Main Structure is the baseline; everything else is added to this. The WBS / planning can be created in several steps.

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7.1.1 Step 1: Main Structure

The Main Structure is the chassis, the basis. Everything else is added to this and therefore depends on it. In the PBS is indicated what material is Main Structure, it does not contain any information about the fabrication. First step is to indicate the Main Structure fabrication sequence in the WBS, for every Deliverable, Block and Section.

7.1.2 Step 2: What is added to the Main Structure

The PBS also list all attachments, foundations and E&H Routing which are fitted and welded [FAW] to the Main Structure and Outfitting material which is mechanically attached. All this products have to be added to the Main Structure and therefore obviously require activities indicated in the WBS. All products with WBS destinations must receive WBS activities.

The products in the PBS may contain material with different WBS destinations, which means that this product requires multiple activities in the WBS. Each activity should be indicated, therefore a product can be in the WBS multiple times, e.g. a sheavebox has two activities: FAW the sheavebox (attachment) to MS and later also outfitting

(mechanical assembly) of that same sheavebox.

7.1.3 Flexible Work allocation: PBS to WBS

The PBS lists the location of the products at the lowest level possible this means that for fabrication this level is the first possible moment to add the material. This is however not bounded, if it is more suitable the material can be added later.

It is wise to do as much FAW of added material as early as possible because this will reduce the throughput time in bigger Workshops. If a lot can be done at Section level, the throughput time at Deliverable level is a lot shorter. For some reason it might however not be possible to FAW it at Section level then it must be done at Block or Deliverable level, but in general the earlier the better.

Outfitting is different, the material is listed in the PBS at the lowest level possible, for example at Section level, however the Painting is done at Deliverable level, then one does not want to do the outfitting at Section level but on the Deliverable level after painting.

The example WBS in Figure 6 shows that the sheavebox, for the Sheavebox Loadtugger inner left top, is attached at Section level, whilst the sheavebox is outfitted at Deliverable level. This way the throughput time in big workshops is reduced.

7.1.4 Semi-automatic WBS creation from PBS

If the structure of the PBS is very strict it is possible to create the WBS semi

automatically from the PBS. The activities for the Main Structure fabrication has to be put in by hand but all added material activities can be semi-automatic.

In the PBS for the products all destination activities are known, all these tasks have to come back in the WBS the only choice is on what level. The task(s) are described in the PBS by product and WBS destination(s), planning department only has to make the choice whether this task should take place at the original level in the PBS or on another level if that is more suitable, as described in chapter 7.1.3 Flexible work allocation. Appendix 5 gives a part of the WBS of the A12-55000 crane mast, this is added to this report to give an additional example of a WBS.

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8

Material Preparation

The current material delivery and therefore material preparation only consists of Single Parts. Now also weldments and assemblies become part of the material preparation, probably only one manufacturing bill of material (mBOM) is preferred for this, meaning that the current module needs to be expanded or replaced. In this chapter is discussed what is in the current module and what will be required.

8.1

Current Preparation Function

The Preparation Function module in FH admin (Fujian Huisman administration system) is used to coordinate the single part production. Every single line in the module

represents a single part; all information is given in the columns in the line, quantity, size etc. but also the production routing by indicating what activities are required, Figure 7.

Figure 7: Screenshot current Preparation Function module in FHadmin

Only a start and finish date are indicated as planning, no amount of hours, the progress is visible in percentage.

8.2

Required additional activities

In comparison with the current module there are some additions required if we want to incorporate weldments and assemblies as well. First of all now fitting and welding (FAW) and mechanical assembly activities (MEC) are required. Optional other activities are trial fit, heat treatment, quality control, commissioning and testing. All activities should be indicated in the routing of the product.

For every activity a workorder or task, as part of a work order, has to be created. The structure of work orders for FAW and MEC already exists because the WBS/planning create these now. The same work order structure should be used for the material preparation FAW/MEC work orders to keep in simple.

8.2.1 Trial fitting during weldment fabrication

For some weldments it is required to trial fit during fabrication of the weldment itself. It needs to be trial fitted on the Main Structure before it can be finished. These weldments have to receive a trial fit activity in their routing. The PBS should list this trial fit

requirement, a suitable moment has to be communicated between WBS, PBS and the material preparation program.

8.3

Hierarchy and demand times

The current preparation module has a flat structure no hierarchy or levels. Hierarchy, similar to the PBS, will however be very helpful for insight in when what is necessary. All products that are directly added to the Main Structure should be on the highest level and

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receive a demand time from the WBS. The demand times for the lower level material need to be added, based on higher level throughput time. The start time for fabrication of the higher level is the demand time for the lower level material.

The current Preparation function does not have this; do we want to replace this module with a more planning like structure, activities listed below each other instead of columns with activities? Or two separate programs: leave all Single Parts as is and create a production planning module for weldments and assemblies? This is not scope of this assignment and therefore added as recommendation for further research in chapter 12.

8.4

Multiple similar products

Often multiple similar products are demanded, maybe for one project or for multiple projects. The products may have different demand times but it is often more practical to produce or purchase more at the same time then for each individual demand time. List the similar parts with a total quantity in the Preparation module but also with

indication of each individual demand amount and time. The choice can then be made to produce all at once or individual. This is in the scope of Supply Chain Management (SCM).

Standardization is very important, similar product should have the same name and article numbers. Then they can be combined in the material preparation program: standard products.

There are many programs available on the market, and companies specialized in the planning, this is not part of the scope of this project.

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9

Production

Production currently receives all work orders from planning department (single part production is left out of the scope for now). In chapter 2 the current situation was already described, in short the major causes of delay in production are:

 Missing material

 No material

 Incorrect work order

It was also mentioned that the work orders are based on drawings (with multiple

weldments) and not individually per weldment. This chapter will tell how production can be organized according to this proposal.

9.1

Proposed production

As proposed the fabrication of the Main Structure and the expanding activities will be separated from the added material fabrication. Currently all work is done by one production department with multiple production groups and coordinated by planning, releasing the work orders.

In the future two departments will create FAW and MEC work orders (planning and work preparation), this seems to cause problems or to be redundant but that is not necessary true. There are basically two ways to organize production: 1, as is. 2, separated

production

9.1.1 Conventional organized production

In fact production does not need to change to implement the PBS and WBS idea, there are still work order being filed and there is still the same amount of work that needs to be done. The origin of the work orders may come from two parties but they can still be collected together before handing over to production. The production department can then by itself decide how to organize the work orders, same as currently; there is no deviation between Main Structure and added materials. This might be very suitable for the transition period, to not change every department at the same time but piece by piece.

9.1.2 Separated production

It is possible to change production to try to make it more efficient. A different way to organize the production is to specialize some production teams in prefabrication: the added material; the other teams are specialized in the Main Structure.

This gives the possibility to physically split the production. This way the material delivery to the Main Structure is really clear. Certain workshops focus on the added material production and the bigger workshops are only used for the Main Structure fabrication and expanding. This makes it possible to really focus on the Main Structure.

9.1.3 Combination

A combination of the above given options is of course also possible: some production teams are fixed on Main Structure or added material and some teams are flexible and can do both and work where required. Obviously this combination is more flexible and makes better use of all resources, the planning can be more challenging though.

The actual choice of how to organize production is not scope of this assignment, here is just listed what the possibilities are. Further investigation is therefore recommended.

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10

Programming: Built or Buy?

To implement this proposal some programs/modules at Huisman need to be changed or added. The programming is not scope of this assignment, however, this chapter

describes what programs need to change and which additional programs are needed. For the additional programs it does not describe the entire programming requirements but only the features that are required and how to interact with other programs. These requirements follow from a manual test of the proposed WBS and PBS in cooperation with Planning department and work preparation. This chapter is an introduction for further investigation. The choice should be made to buy certain programs and adapt to the current system or to completely design the modules for FH admin.

10.1 Product Breakdown Structure

The Product Breakdown Structure (PBS) is a new concept for Huisman but in general it is not something new or special at all. PBS is part of many ERP systems or is a step between engineering and the ERP system. To program the entire PBS ourselves would be like reinventing the wheel. A purchased PBS would contain much more features and possibilities. The special required features are described here.

10.1.1 Drawing input

The PBS should preferably follow automatically from engineering, if not yet then at least there should be some hierarchy in the drawings/partslists. Programming in AutoCAD might be able to create a temporary solution.

10.1.2 Drawing updates

Update function, if the PBS contains multiple of the same assemblies, weldments or single parts and there is an update in engineering, it should be possible to change all those entries at once, instead of manually.

10.1.3 Foundations

When selecting “Foundations” as WBS destination for material in the PBS, the program should give option to select which additional material is required for the actual trial fitting and attaching the Foundations. This might be an intermediate demand time before painting of the additionally required product.

For trial fit for weldments fabrication one should indicate after which material, added to the Main Structure, trial fit can take place.

10.2 Work Breakdown Structure

The WBS is simply said a planning module, those are quite standard, a helpful addition from programming would be to semi-automatic generate tasks in the WBS based on the PBS. The product in the PBS has certain WBS destinations, for each destination the product has to receive a WBS activity. The only task for a planner is not to identify this activity cause that is already known but to put the task on the most suitable breakdown level, as discussed in 7.1.3: Flexible Work allocation: PBS to WBS.

A programmed feature can create the activity in the WBS once the level is selected. Obviously it can then also add all required information, like related drawings. There should remain a link between the PBS and WBS, the material of the product must be linked to the activity.

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10.3 Material Preparation Module

The added material in the PBS has to be fabricated, that is scope of the material preparation module, as already discussed in chapter 8 Material Preparation. This

module must be changed or replaced. All material that is delivered to the Main Structure, as added material or as single part required for Main Structure fabrication, has to be listed in this program. This can be automatically from the PBS with the addition of the deadline from the WBS. The lower level deadlines have to be set according to the throughput time. The activity routing has to be inserted as well.

10.4 SPP modules

The current single part production modules (SPP) for machining and painting will, in the future, also have to work with weldments and assemblies. Currently weldments are already inserted in the machining SPP module. It has to be investigated if there are adjustments or additions required and it has to be implemented for the painting module as well.

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11

Huisman Global vision

Huisman is a global operating company, with multiple production facilities. All the

facilities have different resources and therefore also different limitations. The facilities all have their own way of working, this proposal is written mainly for Huisman China, but can be compared to the ideas of the other facilities and might even be a good set up for Huisman globally.

11.1 Similar for all production Facilities

For all the different production facilities the orders are in fact the same, the breakdown of the Main Structure in Deliverables Blocks and Sections depends on the resource

limitations and are therefore different for each location.

Obviously the single parts used are also the same for each facility. By defining the Main Structure also the products are defined, the demarcation is given in Chapter 4:

Demarcation Main Structure vs. , the goal is to eventually set a global product definition. Instead of only single parts then all products/added material in the PBS will be the same for all Huisman facilities. This will make it easier to compare, communicate and

exchange data or products between different facilities. Only the Main Structure breakdown will remain different for each location.

11.2 Differences with proposal HNL

Table 2 shows the levels in the Product Breakdown Structure proposal of Huisman Netherlands and this PBS proposal. There are a couple of differences which will be discussed here.

Table 2: PBS levels HNL vs. this proposal

HNL current proposal: This proposal:

ID Name Alternative Example Main Structure Added material

L1 Vessel Objects Aegir Level A Level B

L2 End Product Order Multi Lay S L1 Order

Products:

Weldments Assemblies Single Parts Components

L3 System Deliverables Tensioner L2 Deliverable

L4 SubSystem Blocks Tracks L3 Blocks

L5 Assembly Sections Sqeeze Ass. L4 Sections

L6 Component Device E-Motor "it's not a tree…"

L7 Part Bearing

11.2.1 Added material

The HNL PBS uses a tree model, starting at the top working down in smaller pieces until eventually components and parts (level 6 and 7 in the PBS). For HNL from level 3 and onwards, the levels can contain single parts, this is not very clear. This proposal makes a clear demarcation in the PBS between Main Structure and added material: the

products. The Main Structure is the basis for the order and is broken down from order into Deliverables, Blocks and Sections. The products can be added at every level, as was also shown in Figure 3: PBS: material built up, in chapter 6.1.1. There is no fixed level for the products; a level B is introduced parallel to the Main Structure to show the separation Main Structure from Added material, as displayed in Table 2.

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11.2.2 WBS not part of the PBS

The most important difference between this proposal and the current proposal of Huisman Netherlands is the linkage of WBS to the PBS. HNL currently links the WBS directly to the PBS, the tasks are listed immediately behind the material lines in the PBS; it is therefore not possible to do product outfitting at a different level than product

attaching. This is one of the biggest achievements of this proposal: a flexible set up, flexible work allocation as explained in 7.1.3Flexible Work allocation: PBS to WBS. This is supposed to be very important to reduce the throughput time, doing things in early stage reduces later throughput time in the larger (more expensive) workshops.

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